Will the AHJ pass this? Who knows they very well might, there are many inspected services that use a split bolt connector in this manner.
I think the question is Should they pass this?
IMO no, the AHJ should not pass this.
Now this does not appear to me to be a sub panel.
I also do not see this as a violation of 250.64(C).
The GEC may be connected anywhere from the weatherhead to the panel.
250.24(A)(1)General.The connection shall be made at any accessible point from the load end of the service drop or service lateral to and including the terminal or bus to which the grounded service conductor is connected at the service disconnecting means.
What I do see is a 110.3(B) issue as NJwirenut was pointing out.
That split bolt connector is only listed for two conductors not a 'dozen or so'
That 'green' is not insulation, it is green tape covering all the individual EGCs for the branch circuits.
My bet is Joe is also looking for 408.20.
...Where the panelboard is used with nonmetallic raceway or cable or where separate grounding conductors are provided, a terminal bar for the grounding conductors shall be secured inside the cabinet.....